Frequent-flyer program
Points earned under FFPs may be based on the class of fare, distance flown on that airline or its partners, or the amount paid.
Another way to earn points is spending money at associated retail outlets, car hire companies, hotels, or other associated businesses.
[3][4] American Airlines' AAdvantage programme launched in 1981 as a modification of a never-realized concept from 1979 that would have given special fares to frequent customers.
[8] Most larger airlines around the world have frequent flyer programs; each has a programme name, and policies and restrictions regarding joining, accumulating, and redeeming points.
Some programs award a full 500 points (or a similar minimum credit guarantee) for non-stop flights spanning less than 500 miles.
Accruing points via credit cards bonuses and spending allows infrequent travelers to benefit from the frequent flyer program.
With a non-affiliated travel rewards credit card a cardmember can buy a positive-space ticket considered "revenue" class, which can earn the passenger points with the airline flown.
American engineer David Phillips gained attention in 2000 for purchasing $3,140 of Healthy Choice pudding to earn him 1,253,000 AAdvantage miles.
[14] Occasionally, airlines may offer double elite-qualifying mile (EQM) promotions, which speeds up a member's status ascension (or retention) by reducing flight mileage requirements.
[15] Some carriers also require frequent flyers to spend a set amount of money on tickets before they are eligible for elite status.
[19] To date no UK frequent flyer scheme has sought to operate in such a fashion, with both Virgin Atlantic and British Airways opting for the traditional method of granting tier points based on the miles flown and class of travel.
[citation needed] Although a controversial topic and a source of frustration among frequent flyers,[21] award flights are still the primary commodity purchased by members using points.
[independent source needed] Depending on an airline's program, members can also redeem points toward cabin upgrades, hotel stays, car rentals, and purchase of various retail items.
An estimate is approximately one to two cents per point based on discount (rather than full fare) economy class travel costs.
[29] Although it has long been recognized that FFP rewards earned on employer-funded business flights should be subject to either income or fringe-benefit taxation, this is currently not taking place in the vast majority of countries - a notable exception however being Germany.
[26] Australian and German public servants are not permitted to redeem points accrued from official travel for private purposes.
[36] In 2005, the Modernization Minister asked the competition authority to consider extending the Norwegian ban on frequent flyer miles to include all of Scandinavia.
[41] A "mileage run" is an airline trip designed and taken solely to gain maximum frequent-flyer miles, points, or elite status usually at lowest cost.
[43] Some airlines have changed their frequent flyer rules to award miles based on ticket expense rather than absolute distance traveled, which may remove the incentive for mileage runs.
